Join our investing community

Quick Intro

Discussion in 'Introductions' started by Cate, 6th Jun, 2010.

  1. Cate

    Cate New Member

    Joined:
    6th Jun, 2010
    Posts:
    2
    Location:
    Sydney, NSW
    Hi to everyone,

    I am married with 1 son, 2 IP's and looking to add more. Want to learn about buying as much property as quickly as possible in the most effective tax structure, including SMSF. Currently living in Sydney but may be moving to Tassie in the future.:p
     
  2. Johny_come_lately

    Johny_come_lately Well-Known Member

    Joined:
    1st Jul, 2009
    Posts:
    703
    Location:
    SE Queensland
    Hi Cate

    Tasmania's wonderful. Devenport is a nice quiet family town. Houses are soo cheap. :)

    There was a Tassy business that sewed two headed teddy bears. :cool: Should have bought one while I was there.




    Johny.
     
  3. GregR

    GregR Reid Consultants

    Joined:
    13th Jul, 2009
    Posts:
    273
    Location:
    Berwick Vic
    Cate,
    This forum is a good place to increase your knowledge. There are specific threads on SMSF as well.
    My view from a finance perspective, understand your initial position, what funds you have available to invest with, what borrowing capacity you have and what your long term goals are and what your timetable is.

    The tax effective structure will depend on your circumstances and tax effectiveness is only one component of the decision. The questions to ask and the answers they provide will guide you as to what is the most appropriate ownership structures.

    More critical is the asset protection question, are either of you likely to be sued in your own right?
    What are your marginal tax rates?
    Is there any likelihood of change in work arrangements, i.e. one moving to part time or not working at all?

    Allied to these is the question of what type of properties and where are you looking to purchase. If they are positively geared, it brings in a set of structures, if they are negatively geared, it is another set of answers.

    For many investors on a salary, premised on negative geared properties, they buy in the name of the highest margin tax rate earner. You start to use a trust when the tax benefits of -ve geared property in your individual name have been utilised or you want to purchase more IP's in one state and the land tax bill becomes an issue.

    SMSF purchases provide great benefits if you hold to 60+ (assuming rules don't change again) BUT there are restrictions. It is not a vehicle you would use to build a portfolio because you cannot revalue and refinance, so the equity is locked in until you reach retirement. I would normally only look at a SMSF for investors 50+ years as an additional method of purchasing.

    I hope this helps touch on the issues you need to consider.
    Greg
     
  4. Cate

    Cate New Member

    Joined:
    6th Jun, 2010
    Posts:
    2
    Location:
    Sydney, NSW
    Thanks for pointers. From what I have seen of this website, ithas somegreat information.

    Cate